Financial Performance - For the year ended December 31, 2020, the revenue from continuing operations was HK$325,371,000, a decrease of 31.8% compared to HK$476,614,000 in 2019[11]. - The loss for the year attributable to owners of the company from continuing operations was HK$184,117,000, compared to a loss of HK$227,642,000 in 2019[11]. - The company reported a loss before income tax expense of HK$181,070,000 for continuing operations in 2020[11]. - The Group recorded a net loss of approximately HK$182,879,000 for the financial year 2020, a significant reduction of nearly 20% compared to the net loss of HK$227,642,000 in 2019[53]. - The Group's turnover for the year was approximately HK$325,371,000, a decrease from HK$476,614,000 in 2019, reflecting a decline due to the COVID-19 pandemic[52]. - EBITDA for the Group was recorded at approximately HK$82.8 million for the year[36]. - EBITDA for the Group was approximately HK$82,874,000, down from HK$98,152,000 in 2019[53]. - The Sanjiao CBM Project recorded EBITDA of approximately HK$71,235,000, compared to HK$87,918,000 in 2019[65]. - The Group's administrative expenses decreased by approximately 11.7% in 2020, contributing to a narrowing of losses by nearly 20% year-over-year[36]. Production and Sales - Total gas production in 2020 was approximately 101.75 million cubic meters, while gas sales were approximately 96.37 million cubic meters[15]. - The average sale-to-production rate for coalbed methane (CBM) in 2020 was 94.7%[16]. - The sales mix for CBM in 2020 consisted of 11.85% residential piped sales and 88.15% industrial piped sales[17]. - The production volume of CBM was approximately 101.75 million cubic meters, slightly down from 103.22 million cubic meters in 2019[65]. - The gas sale-to-production rate for the Sanjiao CBM Project was approximately 94.7%, down from 97.7% in 2019[65]. - CBM sales revenue for the Sanjiao CBM Project amounted to approximately HK$109,918,000, a decrease from HK$120,900,000 in 2019[65]. - Sales from the Sanjiao CBM Project amounted to approximately HK$109,918,000, down from HK$120,900,000 in 2019, reflecting a decline of 9.1%[48]. - Revenue from the raw coal washing project in Shanxi Province was approximately HK$207,660,000, a decrease of 40.6% from HK$350,353,000 in 2019[48]. Assets and Liabilities - As of December 31, 2020, non-current assets totaled HK$4,932,638,000, an increase from HK$4,404,156,000 in 2019[15]. - The net assets attributable to owners of the company were HK$2,674,738,000 as of December 31, 2020, compared to HK$2,638,185,000 in 2019[15]. - The total liabilities as of December 31, 2020, included non-current liabilities of HK$915,658,000, an increase from HK$574,673,000 in 2019[15]. - External borrowings, including the liability component of convertible notes, were approximately HK$2,134,368,000, up from HK$1,710,000,000 in 2019, with a gearing ratio of 37.9%[86]. Strategic Plans and Development - The company plans to continue focusing on gas production and sales expansion in the upcoming years[12]. - The Group plans to accelerate the development of the Sanjiao CBM Project to achieve a production capacity of 500 million cubic meters within the next 2-3 years[36]. - The Group is actively seeking merger and acquisition opportunities in oil and gas projects in North America and China[26]. - The Group is considering various financing options and debt restructuring to enhance liquidity, with expectations of gradual financial improvement[95]. - The Group is committed to enhancing shareholder value through strategic investments and operational improvements[120]. Governance and Management - The Company has complied with all code provisions in the Corporate Governance Code throughout the year ended December 31, 2020, except for the separation of roles of Chairman and CEO[145]. - The Board is committed to maintaining high standards of corporate governance to enhance shareholder value[144]. - The Company has established specific responsibilities for three committees: Audit Committee, Remuneration Committee, and Nomination Committee[158]. - The Audit Committee consists of three INEDs and is chaired by Professor Wong Lung Tak Patrick, assisting the Board in financial reporting and corporate control[183]. - The Company has a clear delegation of day-to-day operations to divisional management with established guidelines[158]. - The Company provides continuous professional development for Directors, including training on corporate governance and regulatory developments[167]. - The Company maintains an insurance policy to indemnify Directors and senior executives against losses arising from their duties[175]. Market and Economic Context - China's GDP increased by 2.3% in 2020 compared to 2019, showing economic recovery post-COVID-19[106]. - The Group anticipates strong demand for clean energy, particularly natural gas, as part of China's plan to reduce carbon emissions by 18% during the "14th Five-Year Plan"[106].
中国油气控股(00702) - 2020 - 年度财报